Whole Foods P/E Ratios

Target has been a successful retail company coming in 2nd place behind Wal-Mart. Although these success comes in many forms there are factors that deter Target from ever reaching first. Target Corporation has run into a few weaknesses in the recent years. These weaknesses that Target are facing can impact their future goals. These weaknesses include lawsuits that Target is facing with the recent events and not having an international presence.

As of February 17, 2017 at 4:29 PM EST the price of a stock was 45.12 US Dollars with a 2.28% drop of price. Then P/E Ratio is currently at 18.54 and with current Earnings per Share value of .411. The first issue is that the stock price has been dropping since 2014 and kept falling. In 2014, the price of stock was at 72.53

The three-year return on the stock price of Target Corp is 55.79. The stock is performing very well increasing each year. In January 4 2015, Target Corp was at $77.13. In January 4, 2016, Target Corp is 71.38. In January 3, 2017, Target Corp was at $71.44. The three-year return on the stock price of Costco is $173.22. The stock is performing very well, increasing each year. In 2015, the stock was at $145.56 on January 4, 2015. In 2016, the stock went to $151.11 on same time last year, and 162.83 on January 3, 2017. Both of these stocks are comparable by steadily increasing. This indicates that their sales are increasing which means consumers are contributing all the time.

Target’s D/E ratio is a little high compared to its competitors, but this just shows how Target has been aggressive in financing its growth with debt. Even though Target does have a much lower total revenue than both of these competitors, they do have very good ratios and can stand up with their industry competitors.

Target Inc. is an American retailing firm that was founded in 1902 and is currently headquartered in Minneapolis, Minnesota. Since its inception, the company has experienced tremendous growth and profitability to an extent that it is the second largest retailer in the United States, with Wal-Mart being the largest. By 2013, Target Inc. was ranked 36th on Fortune 500 and is among the components of the Standard & Poor 500 index. The success and growth of Target, Inc. is further evident in the expansion of its operations to Australia and Canada where it started operations in March 2013 and has 127 locations. In the United States, Target Corporation has opened more than 1,900 stores, which contribute to the firm’s huge profitability every year. A fundamental financial analysis of its recently published financial statements shows the growth and profitability of Target Inc. across all its major business segments and operations.

Whole foods appear to have Autonomy, loyalty, fairness, and common good. These principles are the foundation for the business. Autonomy exist because Whole food they the employees the right to self-govern. And each employee knows their self-worth to the company. According to (“whole-foods-a-disciplined-democracy,” 2016) “Ownership is a powerful force that can inspire even the most productive workforces to surpass themselves.

The Whole Food’s Mission is Whole Food, Whole People, Whole Planet. Whole Foods consist of the highest quality, least processed, most flavorful and naturally preserved foods available locally and grown from all over the world. Whole People result from empowering, the best people they can recruit, to make many operational decisions, creating a respectful workplace where team members are treated fairly and are highly motivated to succeed. Whole Planet is the belief that companies, like individuals, must assume their share of responsibility for our planet through supporting organic farming on a global basis. Whole Foods mission statement does an excellent job of describing their present situation and the purpose of the company going forward. Their mission statement identifies the company’s product being whole foods, specifies the buyer needs that they are seeking to satisfy, and it gives the company their own identity by separating them from the other natural and organic grocers through environmental stewardship.

Target had many competitors but the top two competitors that were a thret to target was Walmart and Costco. Costco tried to attract the same customers as target does but Costco used a membership fee. So that maid one big difference between both of them. Walmart is very similar to target and operate similar too but Walmart is the dominate company in the industry and operate around the world. Target had a capital expenditure approval process and they are made from a team of top executives that meet and review requests that are over $100,000. This time there getting together and discus 5 projects that represented almost 200 million in proposed capital investments. They know that any decision they made can impact the short term and long term profitability

With a $10,000 loan from his father, John Mackey started SaferWay Natural Foods in Austin, Texas, in 1978. Two years later SaferWay merged with Clarksville Natural Grocery, and Whole Foods Market was born. Seeking capital to expand even more, the company raised $23 million by going public in early 1992 with 12 stores. Every competitor in the fragmented health foods industry became a potential acquisition, and the chain began growing rapidly. In 1998 Whole Foods opened its first store in Boulder -- a 39,000-sq.-ft. superstore with amenities such as a juice bar and a prepared foods section. In 2000 Whole Foods merged its online operations (wholefoods.com) with its direct marketing and nutritional

I choose these firms because of the lower price per earnings relatively to higher revenue generated for each firm. A low P/E indicate either that a firm have done a great job relative to its past trends. In general, lower the price per earnings, the better performance of the firm. Since JPMorgan has the lowest price per earnings, that is the significant reason of why I invest more in that firm, correspondingly, it has generate highest revenue for the firm, which is $104,211,998,720.00. I also choose to invest 35 % in SunTrust Banks because it has a price per earnings of $12, slightly higher than JPMorgan Chase however lower than US Bancorp and a revenue of $8,785,999,872 that are lower than JPMorgan Chase and US Bancorp. I emphasize more on price per earnings and a positive total return regardless of the amount of revenues generated in the current year. US Bancorp has the highest price per earnings among these three, $13.36, which it could lead to lower value of a firm and a revenue of $22,112,999,936 that are lower than JPMorgan Chas’s. All the total return for each firm have a positive value, which indicates a good sign for the firm’s

Customer satisfaction refers to the ability of commodities, services and products that are supplied by a company to meet the consumer expectations (Beard, 2014). Profitability on the other hand refers to the ability to realize extra revenues from their total earnings after paying all their expenses (Grimsley, 2016). Customer satisfaction and profitability link of Whole Foods Company is vested in the company’s mission and values charter under the company’s core values. The company has got five key steps to realizing the link between consumer satisfaction and profitability link according to (WholeFoodMarkets,

The main cost reduction strategy that had been suggested by Whole Food Company is the reduction of 1,500 jobs as of 2015 (Kowitt, 2015). This decision was made because the company had been under intense scrutiny from the other organic and natural food competitors. As such the company is planning to reduce the prices of their commodities. To realize more profits under reduced prices means that the company should cut down the costs. Salary costs are the main expense that cuts down the profit margins of the company and so is the decision to reduce the

Herbalife is currently oversold but I predict, is poised for an increase in the upcoming quarters. Much of this information is speculation until we can perform a basic comparative financial analysis of Herbalife and try to conclude based on the current stock price and financials whether the stock is overvalued, fairly valued, or undervalued. I believe that Herbalife is undervalued and that the stock is worth much more than its current value. Herbalife continues to make strides and the market had observed that it has experienced significant percentage changes in its revenue, EBITDA and earnings over the past five years.

From this chart, we can see that the company’s growth rate is not only exceeding analysts expectations but also shows an increasing trend. Their PEG is 0.79 for the trailing twelve months meaning that for this kind of growth the company may be undervalued especially for the kind of EPS it is generating. It is not a good rule of thumb to only look at present growth but how the present growth rate will map out a picture for the future growth rate.

For Wal-Mart, the expected dividends are $1.09 per share with an expected rate of return at 21%, and an expected stock value of $60.67, Wal-Mart’s intrinsic value is $51.04. Based on the intrinsic value of Wal-Mart’s common stock price, the corporation’s common stocks are under-evaluated by 1.49% or $0.76 per share. More evaluations need to be made before concluding the proper stock price for Wal-Mart, Inc.